General Motors’ advisers are recommending its board consider spurning a German-backed sale of the Opel unit to retain a bigger presence in Europe and Russia, a person familiar with the discussions was quoted as saying on Monday.
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According to Bloomberg News, citing an anonymous source, the advisers suggested that GM seek aid from other European governments to retain ownership of Opel as an alternative to surrendering control to the consortium led by Magna International or to RHJ International.
The report said GM’s new board was questioning the decision made by previous directors to give up control of the unit to save it. The delay has concerned German chancellor Angela Merkel who is pressing for a quick resolution ahead of a general election next month.
The next board meeting isn’t scheduled until September, Bloomberg sources said.
The report noted that rising sales in Europe – helped by various countries’ scrappage incentives – have allowed Opel to operate past when it had been forecast to run out of cash.
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